Teacher SWOT Analysis of Starbucks HRM Strength –HRM practices recognized as one of the companies in the world that has best HRM practices earning the company as the most ethical company in the restaurant industry. This reputation translates to low labor turnover and ease of attracting potential talents into the company. It practice equal opportunity and encourages diversity among its employees and is lauded in the industry. Weakness – its HRM is costly that may render the company less competitive. Starbucks is one of the highest paying company in the industry that includes health benefits and stock options.
All of these entails cost that may difficult to sustain the long run. Opportunity – Starbucks could also extend its HRM practices to its suppliers, farmers who plant and harvest their coffee. Since Starbucks employs its suppliers on a long term basis and in fact does audit to ensure that its farming practices are consistent with its set guidelines, it may include as well the farmers in the audit. Starbucks has the opportunity to include its HRM practices to the farmers and its other suppliers.
This could translate to an ideal corporate citizenship that would earn the goodwill of its customers and therefore, will strengthen the brand to command premium prices. Threat – Competitors with lower prices threatens the company as well as its HRM practices. If competition will become stiff and the market becomes price driven, Starbucks may be forced to cut cost and one of the areas that may be cut is its benefits and pay which its employees enjoy.